Unity Bancorp Reports Quarterly Earnings of $11.5 Million and Full Year Earnings of $41.5 Million

Core Insights - Unity Bancorp, Inc. reported a net income of $11.5 million for Q4 2024, a 5.5% increase from $10.9 million in Q3 2024, with earnings per diluted share rising to $1.13 from $1.07 [1] - For the full year 2024, net income reached $41.5 million, up 4.4% from $39.7 million in 2023, with earnings per diluted share increasing to $4.06 from $3.84 [1][2] Financial Performance - The company achieved a record net income of $41.5 million for the fiscal year 2024, translating to a return on assets (ROA) of 1.68% and a return on equity (ROE) of 14.99% [2] - In Q4 2024, the ROA was 1.83% and the ROE was 15.77% [2] Balance Sheet and Growth - Unity Bancorp's net interest margin expanded by 21 basis points, driven by a 20 basis point reduction in the cost of funds and a 4 basis point increase in loan yields [3] - Loans grew by $43.3 million, or 1.95%, quarter over quarter, funded by a $54.2 million increase in deposits, which represents a 2.65% growth [3] - Noninterest bearing demand deposits increased by $16.8 million, or 3.97%, quarter over quarter [3] Market Outlook - Despite a recent 50 basis point cut in overnight interest rates by the Federal Reserve, the company remains optimistic about growth and profitability in 2025, focusing on core deposit growth and lending to local consumers and small-to-medium sized businesses [4]